Tuesday, July 29, 2014

Ohio Supreme Court To Determine Dormant Minerals Act Issues

The Ohio Supreme Court has accepted two certified questions from the U.S. District Court for the Southern District of Ohio in Corban v. Chesapeake Exploration, L.L.C..  First, the Court will determine whether the 2006 or the 1989 version of the Ohio Dormant Minerals Act applies to claims asserted after 2006.  The Court will then decide whether delay rental payments during the primary term of an oil and gas lease constitute a “title transaction” and “savings event” under the Dormant Minerals Act.  Much of the DMA litigation in Ohio attempts to apply the 1989’s automatic abandonment to claims asserted after the 2006 version of the DMA was passed.  Therefore, if the Court were to determine that the 2006 version applies to such claims, this may curtail some of the growth in DMA lawsuits.  We will continue to monitor DMA litigation. 

Please do not hesitate to contact us with any questions regarding any DMA issues. For more information, please contact Paul Garinger in LGCR's Columbus office at (800) 695-6958 or email pgaringer@lgcr.com.